Speech by the Governor of Tokyo, Yuriko Koike, at the Second Extraordinary Session of the Tokyo Metropolitan Assembly, 2017

In opening the second extraordinary session of the Tokyo Metropolitan Assembly in 2017, I would like to say a few words on the supplementary budget bill for the Central Wholesale Market Account, which has been proposed to this extraordinary session of the Assembly.

From the postponement of the market relocation to announcement of the basic policy

In the limited time since I took office on August 2 of last year, I heard the opinions of a wide range of people. Then on August 31, I decided to postpone the relocation of the Tsukiji wholesale market to the new location in Toyosu. I made this decision because, from the standpoint of putting the people of Tokyo first, I concluded that three problems had yet to be resolved -- safety concerns, the opaque and considerable increase in costs, and insufficient disclosure of information.

To address soil contamination at the Toyosu site, the Technical Council had proposed covering the site with a layer of clean soil. But in September, soon after I announced the postponement of the relocation, it was found that this had not been done in the areas under main buildings, and that water was accumulating in the underground spaces beneath the buildings. We immediately disclosed these findings and started investigating their causes and what measures should be taken.

In the two-year monitoring of groundwater to determine the effects of soil contamination measures, substances exceeding the environmental standards were detected in the eighth survey released last September and the ninth survey released in January this year, although such substances were not detected in the previous surveys.

It was also found that Toyosu Market is, after its opening, expected to post a recurring loss of approximately 9 billion yen every year. It became obvious that we also have challenges with respect to the sustainability of Toyosu Market and the Central Wholesale Market Account.

All of these are significant issues, but because they came to light before the actual move, we were able to look into them from various angles, which I think was fortunate.

Last November, we drew up and released procedures for making a decision on the market relocation to Toyosu from a comprehensive perspective, as well as a roadmap showing the timeline. Based on these, experts, including the members of the Expert Council and the Food Market Project Team, studied the matter, the Market Strategy Headquarters conducted a comprehensive examination from the standpoint of public administration, and we heard opinions from business operators at Tsukiji Market. Each of these steps was taken carefully and attentively.

Announcement of the basic policy

Taking into consideration the wide range of issues discussed on these occasions, and also drawing on various opinions, I gave much serious thought to this matter as the governor of Tokyo. On June 20, I released the basic policy, which calls for utilizing both Toyosu and Tsukiji. Toyosu Market has the potential of becoming Japan’s new key food market, whereas Tsukiji Market is close to the city center and has great potential in various fields. I made the decision based on my firm belief that for Tokyo to grow further, we should utilize both markets. I promptly explained this decision to business operators at Tsukiji Market and heard their opinions directly.

Advancing three initiatives

To translate this basic policy into specific actions of the Tokyo Metropolitan Government, I instructed the vice governors and the director generals of the relevant bureaus to advance three initiatives.

First, early relocation of the market to Toyosu. This is top priority. Second, advance preparations for the Olympic and Paralympic Games. The construction of Ring Road No. 2 and the transportation hub will be steadily implemented. Third, redevelopment of Tsukiji Market. We will start working toward redevelopment that leverages Tsukiji’s appeal to the fullest. In July, the specific measures that should be taken to advance these three initiatives were set out at a meeting of the vice governors and the director generals of the relevant bureaus. Currently, these measures are being implemented in a TMG-wide effort.

Early relocation of the market to Toyosu

Let me speak about the details of the three initiatives.

First, the early relocation to Toyosu.

Toyosu Market will be continuously operated as a central wholesale market. Also, we will work to have the market develop further by taking advantage of its convenient location as a logistics center in the waterfront area.

Ensuring the safety of Toyosu Market is our biggest challenge. We were aiming to remove the soil that was contaminated due to previous operations at this site in order to keep the contamination levels of soil and groundwater within the environmental standards. This endeavor to “detoxify the site” was called for in the supplementary resolution approved by the Tokyo Metropolitan Assembly. The TMG has been respecting this resolution and has taken unprecedented levels of soil decontamination measures. However, this goal has not been achieved. I offered my apologies for having failed to keep our promise to the Tokyo citizens at the latest regular session of this Assembly, and after that, I directly apologized to business operators at Tsukiji Market. We must deeply reflect on why we failed to keep the promise.

The Expert Council, on the other hand, has judged Toyosu Market to be both legally and technically safe, citing that measures based on the Soil Contamination Countermeasures Act were taken appropriately. The council also made a proposal for future risk control through implementing additional construction works in the underground spaces, enhancing the functions of the groundwater management system, and continuing to release the results of environmental surveys. Reflecting on what has happened so far, we will steadily implement these measures and, by doing so, ensure the safety and security of operations at Toyosu Market.

As for the additional construction works, the environmental impact assessment panel, when it met this morning, reported that another round of assessment procedures is not necessary.

To restore the damaged reputation of Toyosu, in addition to bolstering our efforts to provide detailed explanation of past soil decontamination measures and convey accurate information based on surveys of air and groundwater quality, we will offer tours of the Toyosu facilities and take other effective steps, to gain the understanding of the members of the Assembly, Tokyo citizens, and business operators at Tsukiji and assure them of the safety of the new market.

Regarding the issue of the market account sustainability due to the construction and opening of Toyosu Market, we will work to resolve this. We will steadily repay the public enterprise bonds issued to build the new market and formulate specific plans to improve the market’s profitability, such as reducing costs and securing income.

Concerning the usability of Toyosu Market, we received requests from Tsukiji business operators, and the Food Market Project Team also gave their views. In response to these, we will make necessary improvements.

As we need the approval of the Agriculture, Forestry and Fisheries Minister before opening the new market, I visited the minister myself to report on the initiatives taken by the TMG and asked for cooperation. As such, we are steadily taking steps necessary for relocating the market to Toyosu.

As for when to actually relocate the market to Toyosu, once this supplementary budget bill is passed, we will promptly initiate procedures for signing a contract and start the additional construction works. After the works are complete, the Expert Council will check the results. Currently, we estimate that work will be completed by early June of next year. This means the market relocation will take place after that. We will give the Tsukiji business operators a detailed explanation of the supplementary budget, additional works, and other relevant matters, and work without delay on coordinating activities to decide on when to relocate the market.

For Toyosu Market to thrive, it is essential to create the area’s own vibrancy in cooperation with the operator of “Senkyaku Banrai” shopping and entertainment complex to be built in Toyosu, business operators at the market, and the local ward. We will give a sincere explanation to the company scheduled to operate Senkyaku Banrai about the initiatives taken by the TMG. We will also endeavor to gain understanding on Toyosu Market by the local residents and earnestly hear their opinions.

Advancing preparations for the Olympic and Paralympic Games

Continuing, I would like to speak about the second initiative I had instructed the TMG senior officials to advance: advancing preparations for the Olympic and Paralympic Games.

In the lead-up to the Games, we will firmly take steps to prevent any disruption to the operation of the Games. We aim to complete construction of Ring Road No. 2 temporarily as an aboveground road by the end of fiscal 2019, and also steadily advance the development of the transportation hub at the former site of Tsukiji Market.

I recently met with the Minister of Land, Infrastructure, Transport and Tourism, and we confirmed our commitment to cooperate in areas such as ensuring smooth transportation during the Games and making enhancements for barrier-free design in order to host a successful Games.

Redevelopment that leverages Tsukiji’s appeal to the fullest

And now, the third initiative: the redevelopment of Tsukiji Market.

Continuing to leverage the Tsukiji brand, which was built through the ceaseless efforts of those operating businesses at the wholesale market and the many other people credited with Tokyo’s food culture, as well as the Tsukiji area’s potential, I hope to further enhance the appeal of Tokyo. To do so, the TMG will review the matter from the perspective of public finances, and while ensuring economic rationality, will advance studies with the intent to redevelop Tsukiji as a private sector-led project.

In light of such changes, after relocating the market to Toyosu, I would like to examine various measures to respond to everyone’s concerns, including that of wholesalers who wish to return to Tsukiji in the future, while taking into consideration the situation following relocation.

With respect to the specific schedule for redevelopment, we aim to start construction as early as possible within the next five years after following each of the steps required after formulation of the urban development policy, including preparing the basic and detailed design, undertaking city planning procedures, conducting soil and buried cultural asset surveys, and undertaking environmental impact assessment procedures. As the very first step of this process, I would like to establish a council to study the redevelopment of Tsukiji, and paint an ambitious vision that fully leverages Tsukiji’s location from the standpoint of urban development.

Supplementary budget proposal

For the wide range of challenges that I have spoken about, which we face as a government, I believe that the very path to sustainable growth for Tokyo is to unite the entire TMG to address these issues and utilize the vitality of the private sector to the fullest extent possible. I am committed to taking the lead as we move forward on this path, while also empathizing with the concerns and sentiments of the people of the businesses at Tsukiji Market.

The supplementary budget proposal being presented to the Assembly this time has been drawn up from the standpoint of quickly preparing the environment for the relocation of Tsukiji Market to the Toyosu Market site. The proposed supplementary budget includes funds for the cost of additional construction at the Toyosu site, the required costs of preparing for the move, costs related to making facilities at Toyosu Market easier to use for tenants, and expenses related to studying the redevelopment of the Tsukiji Market site. I called this extraordinary session to ask the Assembly to deliberate on this proposal in order to expedite the relocation of the market to Toyosu -- the most pressing issue at hand. Your understanding and positive deliberation would be greatly appreciated.

This concludes my address to the Assembly. Thank you.